KDollar inflow statement propels KSE-100 Index by 489 points

The benchmark KSE-100 Index was up by nearly 700 points during early trading on Monday but later settled at 40,155.16 after a net gain of 485.96 points or 1.23 percent, mainly due to the performance of energy companies.

At one point, the benchmark index had jumped to 40,367.43 against the previous week’s closing level of 39,669.20.

This result was a product of institutional investors’ interest in the state-run entities which boosted the overall sentiments in the Pakistan Stock Exchange, says Ali Nadeem of First National Equities Limited, who added that they were anticipating the trend to continue on Tuesday as well.

Analysts agree that the market players were encouraged by the government’s steps to reduce gas circular debt which boosted the share prices not only of the oil and gas exploration and marketing companies but also of those related to the power generation and distribution.

Also, the feeling of selling being overdone – the stock market crash last week when the benchmark index lost over 1,900 points in three days.

Meanwhile, investors were also buying shares in other sectors that were already in the “oversold zone” last week. However, these gains may prove to be unsustainable as it was a rollover week, in which futures contracts are either settled or rolled over to the next month, and the country’s law and order situation was worsening.

First National Equities Limited Chief Executive Ali Malik said the gas, exploration and refinery sectors led the index upwards on expectations that the government would address circular debt and raise gas prices, which would increase profits and dividends.

Another reason was the perception that political instability would be reduced for a while after PTI Chairman Imran Khan said Punjab Chief Minister Chaudhry Parvez Elahi would dissolve the provincial assembly after taking a trust vote on Jan 11, Malik said. The PTI had previously announced to dissolve the Punjab and Khyber Pakhtunkhwa assemblies on Dec 23.

On Monday, shares of 93 companies were traded of which 55 made gains, 27 were down with the remaining did not register any change.

Meanwhile, the total volume of the KSE-100 index stood at 85.39 million shares, a 10.84 percent increase from 76.13 million shares traded last week on Friday.

As far as the top gainers are concerned, Pak Gul Leasing topped the list with an increase of 17.65 percent followed by Pakistan Petroleum 7.50 percent, Nestle 7.50 percent, Lotte Chemicals 7.47 percent, Attock Refinery 7.25 percent, HBL Growth Fund 6.44 percent and Oil & Gas Development Company 5.33 percent.

On the other hand, the shares which made most losses were Pakistan Tobacco Company 5.86 percent, Hub Power Company 2.27 percent, Adamjee Insurance 2.25 percent, Yousaf Weaving Mills 2.05 percent and Meezan Bank 1.61 percent.


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